Specifically I wonder about what regulations might govern a "bitcoin bank-like entity" and I challenged a well known member of the community with my qestions. My challenge was echoed by another user here:
https://bitcointalksearch.org/topic/m.2590964
Shouldn't be allowed here, infecting someone's pc is a crime.
This board commits all sorts of crimes like allowing tradfortress to promote his illegal unregisered bank, why start following the law now? (That would be very different).
well technically, his business isn't illegal. up until the recent fincen ruling, he was operating in a legal gray area. due to the latest ruling that bitcoin is governed under fincen, he will have 180 days to register with fincen. however in my opinion there may be additional requirements for his particular business model since it could fall under investment laws. it may be end up being simpler in the long run for him to shut off business in the US and relocate elsewhere. this is all opinion with exception of the statement about fincen. he will for sure have to register with fincen, which isn't a damning edict at all. in fact, he's probably already taken care of it.
Then this:
Is this what you're talking about? http://www.fincen.gov/news_room/speech/pdf/20130613.pdf
no, but after reading that, i will say you are still in the gray area of the law based on the poor language chosen in the brief. i think the user help.org had some information as to what actually constitutes a financial institution. by the very definition of the law, coinlenders is a financial institution and it would be hard to prove it isn't based upon the latest edict and the ones that are coming from the FDIC and FTC.Is that a correct reading of the law on the matter? Does Europe have similar laws?